What to Look for in Your Policy When Buying Your First Home?
You are buying your first home and you are wondering what to look for in your first homeowner’s insurance policy.
First, try to find a reputable agent or insurance broker. You want someone who will sit down with you and explain what is covered and what is not covered by a policy. You also want someone who will fully assess your needs.
Second, look for a reputable company and remember that the most important thing about an insurance company is not whether they sell the cheapest policy, but whether they will pay claims. As a result, do not cut corners and go with a certain company just because they are the cheapest. United Policyholders is a non-profit organization that has valuable information on their website that may help you decide which company to pick.
Third, make sure to purchase enough coverage to cover the cost of replacing your home and your personal belongings. This number may be different than the market value of your house, so you should ask your agent or broker for guidance. As to specific coverages to purchase, you may want to consider buying a replacement cost policy. This will pay for the cost of replacing your home if it is damaged or destroyed. You should also consider buying coverage to cover the increased cost of any upgrades required as a result of building codes and other ordinances and regulations. You also should consider buying sewer or septic tank back up coverage. When you have a sewer back-up, it can be very expensive.
I hope that this information is helpful. If you have any questions, do not hesitate to call us